August 23, 2026
The Impact and Recovery of Taiwanese Tourism
How has Taiwanese tourism declined and recovered over the recent years?
Although not as well-known as other Asian tourist destinations, Taiwan’s tourism sector contributes significantly to its economy, affecting hospitality, retail, and transportation businesses. Tourism worldwide suffered a significant decline during the COVID-19 pandemic, and Taiwan was no exception. However, since the decline of the virus, Taiwan’s tourism industry has been on a path of recovery.
The World Health Organization (WHO) declared that the public health emergency regarding COVID-19 had ended in May of 2023.1 Taiwan experienced an increase in international visitors since the pandemic that same year, with the number reaching almost 6.5 million.2 This rebound in the number of visitors is attributed to the slackening of travel restrictions since the official end of the health emergency.
Based on the Annual Report on Tourism 2023, Taiwan, Republic of China, Taiwan’s tourism revenue, with both inbound and domestic spending accounted for, amounted to over $24.5 billion USD. This is almost 3.3% of the nation’s GDP, highlighting the importance of the tourism industry in supporting Taiwanese economic activity and employment—even directly after the pandemic.3
On the other hand, Taiwan also has a booming domestic tourism industry. If you’ve lived in Taiwan, two of the major things you’ll realize are, one, that Taiwanese people are unusually patient, and two, that Taiwanese people are very experience-oriented.
In 2023, there were around 207 million domestic trips with an average per-person, per-trip expenditure of around $80 USD. This adds up to a total domestic tourism expenditure of over $15.9 billion USD.4 So, Taiwanese residents also contributed greatly to the resurgence of the Taiwanese tourism sector.
When it comes to employment, the tourism industry is also a significant creator of jobs. Previously, before the pandemic, an estimated 800,000 individuals were employed in tourism-related occupations, including hospitality, transportation, and retail.5 Of course, the COVID-19 pandemic led to major job losses, especially in tourism. But with the ongoing revival of the tourism industry, the number of jobs is expected to increase once more.
In fact, there is actually a labor shortage in Taiwan’s hospitality sector. The government is currently introducing the integration of migrant workers as of late 2025.6
Tourism remains a vital contributor to Taiwan’s economy in terms of both GDP and employment. Challenges mentioned, such as the labor shortage, still persist. However, the resilience displayed by the sector during COVID times and the government’s investments, tourism is expected to not only be revived but also become even more lucrative in the future.
By: Sihyun P.
1: https://en.wikipedia.org/wiki/COVID-19_pandemic
2: https://admin.taiwan.net.tw/upload/contentFile/auser/b/annual_2023_htm/en/01_Taiwan_Travel_Market.html?
3: https://admin.taiwan.net.tw/upload/contentFile/auser/b/annual_2023_htm/en/01_Tourism_Revenue.html?
4: https://admin.taiwan.net.tw/upload/contentFile/auser/b/annual_2023_htm/en/01_Tourism_Revenue.html?
5: https://taiwaninsight.org/2025/10/24/taiwans-food-culture-as-a-cure-for-overtourism/